London, 10 October, 2022 – Klarna, the global leader in the generational shift away from credit cards, and Deliveroo, the definitive food company, have partnered to offer Klarna’s flexible range of payment options to Deliveroo customers. Consumers benefit from Klarna’s famously smooth payments experience, whether they choose to pay now or pay later, and can keep track of their spending in the Klarna app.

Deliveroo customers will see Klarna as an additional payment option when they arrive at check-out, where they’ll be able to choose one of three payment options:

• Pay Now, to pay the full amount immediately; 
• Pay in 30, to pay the full amount within 30 days; and 
• Pay in 3, to pay in three equal installments, spread over 60 days. 

This range of payment options, all offered within Klarna’s seamless payment experience, provides Deliveroo customers with maximum choice, control and flexibility in how they pay. 

“Deliveroo provides a great service to households, and that’s why we’re excited to offer our alternative payment options to Deliveroo customers,” says David Sykes, Chief Commercial Officer, Klarna, “We believe you should only pay for what you buy with no interest or fees, and it’s never been more important for consumers to have access to payment options which help them stay in control of their finances.”

Carlo Mocci, Chief Business Officer UK&I, Deliveroo, said: “Deliveroo offers amazing choice to our customers, from neighbourhood eateries and your weekday lunch to a Saturday night celebration. Millions of people are already choosing Klarna and we’re giving customers more choice and more flexibility with a safe, secure way to pay online.”

Globally, 40% of Klarna’s transactions are pay now. And Klarna’s short-term, interest and fee free credit products deliver positive outcomes for consumers with extremely low default rates, well below 1%. Klarna assesses a consumer’s ability to repay on each purchase, taking a real time view of someone’s financial circumstances which means using Klarna is never guaranteed. The company restricts the use of its services if consumers miss a payment to prevent debt building up. Because Klarna charges no interest and no fees to consumers, its business model is driven by only extending credit to those who can afford to repay and consumers making responsible financial decisions, unlike traditional forms of credit which profit from late payments. 

Notes to editors: 

• Consumers can pay for their Deliveroo using Klarna’s Pay Now, Pay in 30 and Pay in 3 payment options. 
• Currently, Brits spend £10.5b on food delivery restaurants each year. Considering around 21% of purchases in the UK are on credit cards, that implies £2.2b of fast food spend is purchased on a credit card, which comes with £149m interest charged per year. (Klarna survey data)
• The average household spend per month on takeaway delivery’s is approx. £31 - if this were put on a revolving credit card with an APR of 21.4% (UK Dec-21 avg) paying the minimum amount it would take you 7 months to pay off entirely. (Klarna survey data)
• UK consumers typically dip into their overdraft on the eight day of each month (Yougov). 
• Pay in 3 can only be used on purchases of £30 or more.
• Effective interest rate on credit card lending: 18.65% (Bank of England).
• Effective interest rate on overdrafts: 20.23% (Bank of England).
• Klarna’s UK default rate for the first half of 2022 is now at its lowest level since entering the UK in 2014, at 0.4%.